In a market where uncertainty still dominates headlines, reliable income is getting harder to find. Interest rates remain elevated, geopolitical tensions continue to rattle investor confidence, and equity markets have become increasingly volatile.
That is exactly why dividend-paying stocks are back in focus.
But not all dividend stocks are created equal. Many companies offer high yields because their fundamentals are deteriorating. Others raise dividends consistently but barely pay anything meaningful to investors.
The real opportunity sits in the middle: companies offering high yields above 5% that are still increasing payouts. That combination signals something important. It suggests management has enough confidence in future cash flow to commit to returning more capital to shareholders.
Right now, that list is surprisingly short.
After screening for companies with yields above 5%, recent dividend increases, sustainable payout ratios, and expected earnings growth, only a handful of names stand out. Three in particular deserve investor attention in 2026:
- Verizon Communications
- Best Buy
- VICI Properties
Each comes with risk. But each also offers a compelling mix of income, potential upside, and improving fundamentals.
Why High-Yield Dividend Growth Stocks Matter Right Now
The broader market is not delivering much income.
The S&P 500 currently yields around 1.2%, while even popular dividend-focused ETFs like Vanguard Dividend Appreciation ETF sit closer to 1.5% to 1.6%.
That is barely enough to keep up with inflation, let alone generate meaningful passive income.
The issue is structural. Many of the largest companies in these indexes are growth-focused tech giants that:
- Pay minimal dividends
- Prioritize buybacks over income
- Trade at premium valuations
That leaves income-focused investors searching elsewhere.
The strategy now is simple but not easy:
Find companies paying above-average yields that can still afford to grow them.
Verizon: High Yield Meets Stabilizing Growth
Verizon Communications has quietly become one of the more interesting income plays in the market.
What stands out:
- Dividend yield: ~5.8%
- Recent dividend increase: Raised quarterly payout to $0.71
- Payout ratio: ~58% of projected earnings
- Valuation: Less than 10x forward earnings
That combination is rare in today’s market.
What’s been holding it back?
Verizon has struggled for years with:
- Intense competition from AT&T and T-Mobile
- Price pressure in wireless plans
- Heavy capital spending on 5G infrastructure
On top of that, leadership changes and layoffs have added uncertainty.
What’s changing now?
Recent earnings showed stronger-than-expected subscriber growth, which triggered a sharp rally earlier this year.
Analysts now expect modest earnings growth heading into 2026.
Investor takeaway
Verizon is not a growth stock. It is a cash flow machine.
If subscriber trends continue stabilizing, investors are effectively getting:
- A near 6% yield
- Gradual dividend growth
- Potential valuation upside
Best Buy: A Turnaround With Income Attached
Best Buy is not the first name investors think of when looking for dividend stability. But that is exactly what makes it interesting.
Key metrics:
- Dividend yield: ~6%
- Recent increase: Dividend raised to $0.96 per share quarterly
- Expected growth: ~1% earnings growth in 2026
The problem
Best Buy has been under pressure from:
- E-commerce competition, especially from Amazon
- Slowing consumer electronics demand
- Post-pandemic normalization in spending
Why it still works
Despite these challenges, Best Buy continues to generate strong cash flow and has:
- A manageable payout ratio
- A commitment to returning capital to shareholders
- A loyal customer base in higher-end electronics
The company is not collapsing. It is stabilizing.
Investor takeaway
Best Buy is a classic value-income hybrid:
- High yield compensates for slower growth
- Dividend increases signal confidence
- Any improvement in consumer demand could drive upside
VICI Properties: A REIT Built on Vegas Cash Flow
VICI Properties is one of the more unique income plays in the market.
It owns some of the most iconic real estate on the Las Vegas Strip, including:
- Caesars Palace
- The Venetian Resort
Key metrics:
- Dividend yield: ~6.5%
- Expected growth: ~10% growth in adjusted funds from operations
- Business model: Long-term triple-net leases
What’s the concern?
The biggest fear has been:
- Competition from online gambling
- Slower traffic growth in Las Vegas
- Broader concerns about discretionary consumer spending
Why that concern may be overblown
Las Vegas continues to show resilience:
- Tourism remains strong
- High-end experiences continue to drive demand
- Major events and conventions are returning
Meanwhile, VICI’s lease structure means tenants are responsible for most operating costs, providing predictable income.
Investor takeaway
VICI offers something rare:
- High yield
- Contractual revenue streams
- Growth tied to real estate cash flow
It is one of the more stable ways to gain exposure to the entertainment and gaming sector.
Why This List Is So Small
The fact that only a few companies meet these criteria tells you everything you need to know about today’s market.
To qualify, a company must:
- Pay a high dividend
- Increase that dividend
- Maintain a sustainable payout ratio
- Show at least some earnings growth
Most companies fail at least one of those tests.
That is why these opportunities matter.
Risks Investors Should Not Ignore
Let’s be clear. High yields come with trade-offs.
Across these three stocks, the main risks include:
- Verizon: Competitive pressure and capital intensity
- Best Buy: Consumer demand and margin compression
- VICI: Exposure to discretionary spending and gaming trends
If conditions worsen, high yields can quickly become unsustainable.
That is why payout ratios and cash flow matter more than headline yield.
Income Is Back, But Selectivity Is Everything
Dividend investing is making a comeback in 2026, but it is not as simple as chasing the highest yield.
The real edge comes from finding companies that can:
- Sustain payouts
- Grow those payouts
- Survive economic uncertainty
Right now, Verizon Communications, Best Buy, and VICI Properties check those boxes.
They are not perfect. But they offer something increasingly rare:
Meaningful income with a path to growth.
For investors looking to generate cash flow while staying positioned for potential upside, that combination is hard to ignore.
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